One of the issues regularly debated when companies are suspected of or are caught manipulating their financial statements is the magnitude of executive compensation. Thus, it isn't surprising that after significant accounting scandals, legislatures and the general public often demand additional disclosure requirements related to compensation packages for the top employees. A provision addressing the demand for more accountability within the context of executive compensation is the Rule 10D-1 "clawback" under the Dodd-Frank Act (P.L. 111-203) with which the U.S. Securities & Exchange Commission (SEC) proposed a recovery policy in the event of accounting restatements. Specifically, the rule introduces a new listing standard for publicly traded companies that, when adopted, would require.
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